Helsinki, Finland, 2012-09-07 07:00 CEST (GLOBE NEWSWIRE) --
Lassila & Tikanoja plc Stock Exchange Release 7 September 2012 at 8.00 a.m.
Lassila & Tikanoja is renewing the company strategy for 2013-2016. In accordance with L&T’s new, clarified portfolio, L&T’s core business consists of environmental, industrial and facility services.
In operations abroad, L&T’s focus is now on improving profitability. L&T will make carefully planned investments for growing services in current market areas.
New segments
L&T will reorganise its business divisions and reporting segments to support the shift in core business focus and priorities. From 1 January 2013, L&T’s reporting segments are:
Environmental Services division consists of the waste management and recycling business.
Industrial Services division covers solutions for industrial material flows and their utilisation, industrial process cleaning solutions, collection and disposal of hazardous waste and sewer system maintenance and repair solutions. These services are currently included in the Environmental Services division.
Facility Services division consists of the current Cleaning and Office Support Services and Property Maintenance divisions.
Renewable Energy Sources (L&T Biowatti) will no longer be included in L&T's core business portfolio. Profitability improvement is now the key priority in this segment.
Growth efforts to focus on service business
In the future, L&T will seek growth in less capital-intensive service operations. The key market is Finland, where the market potential L&T has identified for its environmental, industrial and facility services exceeds EUR 4 billion.
Waste management and recycling business will continue to be the cornerstones of Environmental services. L&T’s priority growth areas in the coming strategy period include basic business as well as the services and material utilisation solutions required by the industry and the municipal sector.
In Facility Services, growth is primarily sought from office support services and from the extension of L&T’s network of damage repair and maintenance services for technical systems.
New financial targets
For the strategy period 2013-2016 L&T’s key priorities include organic growth in core businesses and profitability and ROI improvement.
L&T’s new financial targets are:
- Organic growth of more than 5% a year
- Operating profit 9%
- Return on investment (ROI) 20%
- Gearing 30-80%
Capital Markets Day 14 September 2012
L&T is hosting a Capital Markets Day for investors, analysts and the media to explain its new strategy in more detail.
LASSILA & TIKANOJA PLC
Pekka Ojanpää
President and CEO
More information:
Pekka Ojanpää, President and CEO, tel. +358 10 636 2810
Ville Rantala, CFO, tel. +358 50 385 1442
Keijo Keränen, Head of Treasury and IR, tel. +358 50 385 6957.
Lassila & Tikanoja specialises in environmental management and facility and plant support services. With operations in Finland, Sweden, Latvia and Russia, L&T employs 10,000 persons. Net sales in 2011 amounted to EUR 652 million. L&T is listed on NASDAQ OMX Helsinki.
Distribution:
NASDAQ OMX Helsinki
Major media
www.lassila-tikanoja.com